Please confirm you are following the proper button release procedure
To place the pic in programming mode make sure... 1) hold both buttons down for 1sec
2) release the button closest to the ICSP connector, wait for the blinking lights
3) then release the button closest to the SD card

If you release the buttons in the wrong order, it does not enter programming mode.

Today, Olimex provided the working Pinguino Bootloader for the PIC32 Micro...and I discovered the LibUSB-Win32, which is a small program provided in the Pinguino Installation Folder. The Bootloader is easily recognized on Win7, "Devices and Printers" as a USB HID BOOTLOADER". BUT to be recognized by PINGUINO one must run LibUSB and 'filter' the Bootloader. To identify the Bootloader in LibUSB, one must find its 'Hardware Ids", which means opening the HID-complaint device Properties window and set the Property to "Hardware Ids".